The Department of Labor (DOL) has published a proposed rule that would amend the COBRA Notice that employees receive when leaving a company that offers health insurance to make it clear these employees can purchase health insurance on the Affordable Care Act (ACA) marketplaces.
Under provisions of the Consolidated Omnibus Budget Reconciliation Act, or COBRA, workers leaving jobs or undergoing certain other qualifying events (such as a reduction in hours) are eligible to purchase continuation coverage of the work-provided health insurance they're losing .
Under the ACA, they can now also shop for their own replacement coverage on the state or federal health insurance online marketplaces during Special Enrollment Periods (SEPs) triggered by the job event.
The DOL's proposed rule amends the COBRA Notice that was rewritten in 2013 to reflect ACA options by making the individual marketplace option more prominent.
At the same time, the DOL has issued updated COBRA Notices reflecting these changes.
The publication of the proposed rule in the Federal Register on Friday opens up a 60-day public commentary period.